5 Best Multicap Mutual Funds to invest in 2020 in India

Many mutual fund advisors keep advising investors to diversify their portfolio instead of investing in a single segment of mutual funds. This is due to the fact that some could be moderate risk, some could be high risk etc., However sometimes it would be difficult to keep too many funds in our portfolio. Here come multicap mutual funds. Multicap Funds invest in stocks across market capitalization. They don’t just restrict to one segment like large cap or midcap or small-cap. This way there is diversification in the portfolio. In this article we would provide some of the Best Multicap mutual funds to invest in 2020 in India for medium to long term.

As the name indicates, these are diversified mutual fund schemes which can invest in stocks across market capitalization. They are relatively less risk compared to a mid cap or a small cap fund. Hence, these are generally termed as moderate to high risk funds.

How we filtered these Best Multi cap mutual funds in India to invest in 2020?

Like every year, even this year, we are recommending multi-cap funds that can outperform in the coming years. Here are the list of parameters which we considered in short listing the multicap mutual funds to invest in India.

1) We considered best performing Multi cap funds in the last 10 years, 5 years, 3 years, 1 year and 3 months. Stock markets are taking correction, hence we have taken short term performance also into consideration.

2) We have short listed funds that performed well during various market cycles in the last 5-10 years.

3) These funds are rated by value research online as 3 star, 4 star and 5 star.

4) These funds have Assets under Management as > Rs 500 Crores.

Is there any change in the list where we indicated best Multicap mutual funds to invest in 2019?

There are a few changes made based on the recent trend. However, if you have invested in those funds, you can continue to invest in them.

Best Multicap Mutual Funds to invest in 2020

Here are the list of Multicap mutual funds invest in 2020 for the long term.

#1 – Axis Focused 25 Fund

#2 – SBI Focused Equity Fund

#3 – Parag Parikh Long Term Equity Fund

#4 – Kotak Standard Multicap Fund

#5 – Aditya Birla Sun Life Equity Fund

Now let us see the reasons why we need to invest in these Multicap mutual funds now.

#1 – Axis Focused 25 Fund

What is this Fund Investment Strategy?

The scheme seeks to generate long term capital appreciation by investing in a concentrated portfolio of equity & equity related instruments of up to 25 companies, primarily in companies among the top 200 in terms of market capitalization.

How is the performance of this Multicap mutual fund?

This fund has outperformed and gave 10% annualized returns in the last 5 years and 15% annualized returns in the last 3 years. In the short term, it gave 18% returns in the last 1 year and 12% returns in the last 6 months.

This fund gave highest SIP returns. If one would have done SIP for Rs 1,000 per month for 93 months (since inception), the investment would have been Rs 93,000 and such fund would have now grown to Rs 3.56 Lakhs. Similarly, if one would have invested Rs 1,000 per month for 5 years, the investment would have been Rs 60,000 and such amount would have now grown to Rs 82,900.

We are providing the NAV Chart (source: value research) of this mutual fund scheme and comparison with its benchmark. This would help you to assess how the fund has performed in the last 7-8 years and how it is compared to its benchmark index. Fund performance should be always higher compared to index which provides that the fund can deliver higher returns.

Performance, Ratios and Risk Statistics

Fund Performance

Axis Focused 25 Fund

Net Assets (AUM) Rs Crs

9,627

Exp Ratio

1.85%

Returns in 3mth

12%

Returns in 1 year

18%

Annualised Returns in 3 years

15%

Annualised Returns in 5 years

10%

Annualised Returns in 10 years

NA

Growth of 1 Lakh in the last 1 year

117,750

Growth of 1 Lakh in the last 3 years

151,177

Growth of 1 Lakh in the last 5 years

163,259

Growth of 1 Lakh in the last 10 years

NA

Ratios and Risk Statistics

Axis Focused 25 Fund

Mean

14.54

Standard Deviation

14.04

Sharpe Ratio

0.64

Sortino

0.81

Beta Ratio

0.93

Alpha Ratios

6.51

Why should you invest in this Multi cap fund?

This fund has given 16% annualized return since inception. This fund has 0.93 Beta which indicates low volatility compared to benchmark. Considering its long standing performance in the last 5-7 years, this can be considered as one of the Best Multicap mutual fund to invest in 2020.

#2 – SBI Focused Equity Fund

What is this Fund Investment Strategy?

The scheme seeks to provide the investor with the opportunity of long-term capital appreciation by investing in a concentrated portfolio of equity and equity related securities.

How is the performance of this Multicap mutual fund?

This fund has outperformed and gave 16% annualized returns in the 10 years, 10% annualized returns in the last 5 years and 14% annualized returns in the last 3 years. In the short term, it gave 17% returns in the last 1 year and 14% returns in the last 6 months.

This fund gave highest SIP returns. If one would have done SIP for Rs 1,000 per month for 10 years, the investment would have been Rs 120,000 and such fund would have now grown to Rs 2.7 Lakhs. Similarly, if one would have invested Rs 1,000 per month for 5 years, the investment would have been Rs 60,000 and such amount would have now grown to Rs 81,500.

We are providing the NAV Chart (source: value research) of this mutual fund scheme and comparison with its benchmark. This would help you to assess how the fund has performed in the last 5-10 years and how it is compared to its benchmark index. Fund performance should be always higher compared to index which provides that the fund can deliver higher returns.

Performance, Ratios and Risk Statistics

Fund

SBI Focused Equity Fund

Net Assets (AUM) Rs Crs

7,694

Exp Ratio

1.88%

Returns in 3mth

14%

Returns in 1 year

17%

Annualised Returns in 3 years

14%

Annualised Returns in 5 years

10%

Annualised Returns in 10 years

16%

Growth of 1 Lakh in the last 1 year

117,230

Growth of 1 Lakh in the last 3 years

147,765

Growth of 1 Lakh in the last 5 years

162,963

Growth of 1 Lakh in the last 10 years

451,520

Ratios and Risk Statistics

SBI Focused Equity Fund

Mean

14.51

Standard Deviation

13.30

Sharpe Ratio

0.67

Sortino

0.99

Beta Ratio

0.83

Alpha Ratios

6.74

Why should you invest in this Multi cap fund?

This fund has given 20% annualized return since inception. This fund has 0.83 Beta which indicates low volatility compared to benchmark. Considering its long standing performance in the last 5-10 years, this can be considered as one of the top performing Multicap mutual fund to invest in India.

This fund has outperformed and gave 9% annualized returns in the last 5 years and 11% annualized returns in the last 3 years. In the short term, it gave 8% returns in the last 1 year and 7% returns in the last 6 months.

This fund gave highest SIP returns. If one would have done SIP for Rs 1,000 per month for 5 years, the investment would have been Rs 60,000 and such fund would have now grown to Rs 76,900. Similarly, if one would have invested Rs 1,000 per month for 3 years, the investment would have been Rs 36,000 and such amount would have now grown to Rs 40,000.

We are providing the NAV Chart (source: value research) of this mutual fund scheme and comparison with its benchmark. This would help you to assess how the fund has performed in the last 5-6.5 years and how it is compared to its benchmark index. Fund performance should be always higher compared to index which provides that the fund can deliver higher returns.

Performance, Ratios and Risk Statistics

Fund

Parag Parikh Long Term Equity Fund

Net Assets (AUM) Rs Crs

2,784

Exp Ratio

2.01%

Returns in 3mth

7%

Returns in 1 year

8%

Annualised Returns in 3 years

11%

Annualised Returns in 5 years

9%

Annualised Returns in 10 years

NA

Growth of 1 Lakh in the last 1 year

108,000

Growth of 1 Lakh in the last 3 years

135,253

Growth of 1 Lakh in the last 5 years

156,563

Growth of 1 Lakh in the last 10 years

NA

Ratios and Risk Statistics

Parag Parikh Long Term Equity Fund

Mean

10.62

Standard Deviation

9.32

Sharpe Ratio

0.54

Sortino

0.57

Beta Ratio

0.58

Alpha Ratios

3.50

Why should you invest in this Multi cap fund?

This fund has given 15% annualized return since inception. This fund has 0.58 Beta which indicates low volatility compared to benchmark. Considering its long standing performance in the last 5-6.5 years, this can be considered as one of the Top Multicap mutual fund to invest in 2020.

#4 – Kotak Standard Multicap Fund

What is this Fund Investment Strategy?

The scheme seeks to generate long term capital appreciation from a portfolio of equity and equity related securities, generally focused on a few selected sectors.

How is the performance of this Multicap mutual fund?

This fund has outperformed and gave 13% annualized returns in the last 10 years, 8% annualized returns in the last 5 years and 9% annualized returns in the last 3 years. In the short term, it gave 8% returns in the last 1 year and 6% returns in the last 6 months.

This fund gave highest SIP returns. If one would have done SIP for Rs 1,000 per month for 10 years, the investment would have been Rs 1.2 Lakhs and such fund would have now grown to Rs 2.4 Lakhs. Similarly, if one would have invested Rs 1,000 per month for 5 years, the investment would have been Rs 60,000 and such amount would have now grown to Rs 75,000.

We are providing the NAV Chart (source: value research) of this mutual fund scheme and comparison with its benchmark. This would help you to assess how the fund has performed in the last 5-10 years and how it is compared to its benchmark index. Fund performance should be always higher compared to index which provides that the fund can deliver higher returns.

Performance, Ratios and Risk Statistics

Fund

Kotak Standard Multicap Fund

Net Assets (AUM) Rs Crs

30,546

Exp Ratio

1.65%

Returns in 3mth

6%

Returns in 1 year

8%

Annualised Returns in 3 years

9%

Annualised Returns in 5 years

8%

Annualised Returns in 10 years

13%

Growth of 1 Lakh in the last 1 year

107,880

Growth of 1 Lakh in the last 3 years

128,437

Growth of 1 Lakh in the last 5 years

149,605

Growth of 1 Lakh in the last 10 years

343,686

Ratios and Risk Statistics

Kotak Standard Multicap Fund

Mean

9.13

Standard Deviation

12.67

Sharpe Ratio

0.28

Sortino

0.42

Beta Ratio

0.93

Alpha Ratios

1.10

Why should you invest in this Multi cap fund?

This fund has given 13% annualized return since inception. This fund has 0.93 Beta which indicates low volatility compared to benchmark. Considering its long standing performance in the last 5-10 years, this can be considered as one of the best multi-cap fund to invest in 2020.

#5 – Aditya Birla Sun Life Equity Fund

What is this Fund Investment Strategy?

The fund seeks long-term growth of capital and regular income through 90% investment in equities and 10% in debt and money market securities. The scheme would adopt top-down & the bottom-up approach of investing & a portion of the scheme will also be invested in IPOs, emerging sectors & other primary market offerings.

How is the performance of this Multicap mutual fund?

This fund has outperformed and gave 12% annualized returns in the last 10 years, 8% annualized returns in the last 5 years and 7% annualized returns in the last 3 years. In the short term, it gave 7% returns in the last 1 year and 10% returns in the last 6 months.

This fund gave highest SIP returns. If one would have done SIP for Rs 1,000 per month for 10 years, the investment would have been Rs 1.2 Lakhs and such fund would have now grown to Rs 2.33 Lakhs. Similarly, if one would have invested Rs 1,000 per month for 5 years, the investment would have been Rs 60,000 and such amount would have now grown to Rs 72,500.

We are providing the NAV Chart (source: value research) of this mutual fund scheme and comparison with its benchmark. This would help you to assess how the fund has performed in the last 5-10 years and how it is compared to its benchmark index. Fund performance should be always higher compared to index which provides that the fund can deliver higher returns.

Performance, Ratios and Risk Statistics

Fund

Aditya Birla Sun Life Equity Fund

Net Assets (AUM) Rs Crs

12,098

Exp Ratio

1.82%

Returns in 3mth

10%

Returns in 1 year

7%

Annualised Returns in 3 years

7%

Annualised Returns in 5 years

8%

Annualised Returns in 10 years

12%

Growth of 1 Lakh in the last 1 year

107,010

Growth of 1 Lakh in the last 3 years

121,648

Growth of 1 Lakh in the last 5 years

146,865

Growth of 1 Lakh in the last 10 years

297,795

Ratios and Risk Statistics

Aditya Birla Sun Life Equity Fund

Mean

7.34

Standard Deviation

12.72

Sharpe Ratio

0.14

Sortino

0.19

Beta Ratio

0.91

Alpha Ratios

-0.65

Why should you invest in this Multi cap fund?

This fund gave 22% annualized return in the last 10 years. This fund has 0.91 Beta which indicates low volatility compared to benchmark. Considering its long standing performance in the last 5-10 years, this can be considered as one of the top 5 multicap mutual funds for the long term.

Performance, Ratings and Expense Ratios of these Multi Cap Funds

Some FAQs about Multicap mutual fund schemes

1) Is Multicap fund good?

Investing in particular segments of mutual funds could always be risky. Hence mutual fund experts advise you to diversify your portfolio. In such scenario, investing in multicap funds is always a good idea.

2) Which is the best multicap fund?

As indicated earlier in the article, below are the top 5 multicap mutual funds to invest for the long term.

Axis Focused 25 Fund

SBI Focused Equity Fund

Parag Parikh Long Term Equity Fund

Kotak Standard Multicap Fund

Aditya Birla Sun Life Equity Fund

3) Which is better mid cap or multicap?

Midcap funds invest in midcap stocks which are categorized from 101th to the 250th company in terms of market capitalization. These are considered to be high risk. On the other hand multicap funds would invest in stocks from various market capitalization. It can invest in large cap or midcap or small cap stock. Hence multicap funds can perform differently based on the underlying stocks. Sometimes these would be moderate risky and sometimes they can be high risk. If you are very high risk investors, you can invest in some of the Best Midcap Mutual Funds in 2020.

4) Is SBI Magnum Multicap good?

SBI Magnum multicap fund gave 11% annualized returns in the last 10 years, 8% annualized returns in the last 5 years and 8% annualized returns in the last 3 years. This fund performed well compared to some of its peers.

5) What is the difference between multicap and diversified funds?

There is no difference between multi-cap and diversified funds.

6) Who should invest in multicap fund?

If you are moderate to high risk taker and willing to invest for 7-10 years to achieve specific financial goals, you can invest in these multicap mutual fund schemes.

Disclaimer: These Multicap funds do not offer guaranteed returns. Past performance may or may not repeat in future.

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2 comments

I am regular reader of your blog. Its good to see risk, exp ratio & statistic..Get more clear view of funds.. Thanks for well informed article. Just one query, ABSL equity fund has negative Alpha, why still it has made it best multicap fund ??. Just becoz of past return & star rating it has got…

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Suresh KP i.e. me, have written 1800+ articles on this Blog. I love doing analysis on various Best Investment Plans like mutual funds, Stocks, IPO’s, NCD Bonds, Insurance products. If you like our blog, you can share some of the good articles on your Facebook or Twitter. This would be the BIGGEST gift which you would be giving to us.